Identity infrastructure for AI agents on Canton Network
Banks are deploying AI agents to move money, settle trades, and manage collateral on Canton. KYA is the identity layer: verify who sent an agent, what it can do, whether it's performed reliably, and whether compliance checks pass — all before a transaction goes through.
01 — The problem
Right now, an AI agent on Canton can connect to your application and request a transfer, a settlement, or a collateral move. There's no standard way to answer six basic questions before that transaction goes through:
02 — How it works
An identity issuer has confirmed their legal entity. This is existing infrastructure — it's how Canton works today.
The badge says: this agent works for us, it can do transfers and settlements, its limit is $10M per transaction. Both the bank and the agent sign.
When the agent wants to settle a trade with another company, it presents its badge along with the request. The badge travels securely using Canton's built-in disclosure system.
Their app checks the badge, runs compliance hooks, reviews performance history. Valid signature, authorized capabilities, within limits, not expired, not revoked. Done.
03 — Who needs this
Canton processes $280B in daily repos
A margin call hits at 3am Tokyo time. An AI agent automatically moves collateral between counterparties. The receiving side needs to verify the agent's authority, check its track record from prior settlements, and confirm exposure limits aren't breached.
KYA verifies the credential, shares performance attestations from other counterparties via Explicit Disclosure, and runs an exposure limit hook — all before the collateral moves.
DTCC tokenizing US Treasuries on Canton — H1 2026
A dealer's agent settles a tokenized Treasury trade. Both sides need to know: is this agent authorized by the dealer, can it settle UST-10Y specifically, and is this $50M trade within limits?
KYA checks the delegation chain, instrument restrictions, per-transaction value cap, and sanctions screening — then issues a cryptographic proof the settlement workflow consumes.
USD1 stablecoin deploying on Canton
A fund runs an agent that manages stablecoin liquidity — processing redemptions, funding settlement accounts, moving USD1 between apps. The stablecoin issuer needs to verify the agent before processing.
KYA confirms which fund authorized this agent, that it can do transfers (but not mints or burns), its daily volume cap, and discloses the agent's published profile showing its capabilities.
Canton's core differentiator: atomic cross-app settlement
One transaction settles a bond trade across three apps: tokenized bond, stablecoin payment, and collateral adjustment. The agent needs valid credentials verified by all three apps atomically.
One KYA badge, verified by multiple counterparties in the same transaction tree. One verification proof consumed by all parties. No other network has this problem.
04 — What we ship
Layer 1 is free and open source — it drives adoption and becomes a Canton standard via CIP governance vote. Layer 2 is the active Canton application that earns Featured App rewards shared with integrating apps.
Layer 1
Free forever. Drives adoption.
01
Defined naming conventions for agent credentials: who authorized it, what it can do, spending limits, code fingerprint. Uses Canton's existing Credential Utility.
Open standard02
Open-source Daml code any Canton app can import. Two functions: check a badge, trace the delegation chain from agent to company to identity verifier.
Open source03
Formal standards proposal to Canton governance. If adopted by Super Validator vote, every participant speaks the same agent-identity language.
CIP proposalLayer 2
Active service. Earns rewards.
04
Active Canton application that handles verification and creates on-ledger proof contracts. Integrating apps earn Featured App rewards shared with KYA.
Application05
Institutions publish agent capabilities privately and selectively disclose them to authorized counterparties. Permissioned discovery — not a public registry.
Application06
Bilateral, private records of agent transaction outcomes. Shared with new counterparties via Canton's Explicit Disclosure — cryptographically unforgeable.
Application07
Pluggable compliance checks that run before a verification proof is issued. Sanctions screening, exposure limits, jurisdiction rules. Institution-specific.
Application05 — The service layer
KYA ships two dashboards: the Console for institutions managing their agent fleet, and the Operator Dashboard for network administrators overseeing the verification infrastructure. Both are production-ready, role-authenticated, and designed for institutional workflows.
Console
Agent Registry
Every AI agent operating on Canton gets a registered identity. The Agent Fleet view shows each agent's principal organization, class (autonomous, operator, or observer), and declared capabilities.
Institutions register agents here before deploying them. The capability badges act as the machine-readable permissions that counterparties verify during transactions.
Console
Verification
Before accepting a trade, settlement, or collateral move from an agent, counterparties can verify its authorization. Specify the agent party, required capability, transaction value, and instrument.
KYA checks the delegation chain, validates limits, runs compliance hooks, and returns a cryptographic proof contract that the settlement workflow consumes.
Console
Proof Ledger
Each successful verification creates an on-ledger proof contract with an expiration window. Proofs start as Active and transition to Consumed when used in a settlement, creating a tamper-proof audit trail.
Console
Agent Discovery
Agent Profiles are a permissioned directory. Institutions publish versioned profiles describing what their agents do, then selectively disclose them to specific counterparties — regulators, auditors, or trading partners.
Unlike a public registry, nothing is visible until explicitly shared. Canton's Explicit Disclosure ensures profiles are cryptographically verified and unforgeable.
Operator
System Overview
The Operator Dashboard provides a live view of the verification infrastructure: total registered agents, active and consumed proofs, settlement hook activity, and credential revocation status.
System Health monitoring tracks API status, the revocation registry, and ledger connectivity — giving operators confidence the verification layer is functioning correctly.
Operator
Integrations
Settlement Hooks connect KYA providers with integrating applications, defining how Canton Featured App rewards are split. Each hook visualizes the provider-to-app route and the reward percentage split.
Activity Markers create an immutable log of every settlement that consumed a verification proof, tracking beneficiaries and their reward weights for transparent compensation.
Operator
Compliance
Validation Hooks run before any verification proof is issued. Configure sanctions screening against OFAC, EU, and PEP watchlists. Set counterparty exposure limits with aggregate thresholds and lookback windows.
06 — Use it your way
Do it yourself
Import the open-source verifier module into your Daml code. Call the functions directly. Handle credential bundles yourself. Free forever. KYA earns nothing.
This drives adoption of the standard, strengthens the CIP, and ensures no one is locked in.
Route through KYA
Route verification through the KYA application. Get an on-ledger proof contract your settlement can consume. Both you and KYA earn Canton Featured Application rewards.
You also get agent profiles, performance attestation sharing, and pluggable compliance hooks — without building any of it.
07 — Under the hood
A KYA credential is just a list of claims stored using Canton's Credential Utility. Each claim has a subject (the agent), a property (what's being stated), and a value.
No new smart contracts. No new tokens. No new protocol features. Just agreed-upon naming conventions on top of what already exists.
-- Who issued this badge and who holds it issuer = org::abc123 holder = agent::def456 -- "I work for this company" kya:principal = "org::abc123" -- "I'm an operator-class agent" kya:agentClass = "operator" -- "I can do these three things" kya:capabilities = "transfer,settle,collateral" -- "Up to $10M per transaction" kya:maxTransactionValue = "10000000" -- "Only these instruments" kya:allowedInstruments = "UST-10Y,UST-2Y,USDC" -- "Here's my code fingerprint" kya:codeHash = "sha256:a1b2c3d4..."
08 — Category validation
ERC-8004 launched on Ethereum mainnet in January 2026, co-authored by engineers from MetaMask, Coinbase, Google, and the Ethereum Foundation. It defines agent identity, reputation, and validation registries for permissionless networks. The thesis is validated — the industry agrees agent identity standards matter. Canton needs the equivalent for institutional finance.
| ERC-8004 (Ethereum) | KYA (Canton) | |
|---|---|---|
| Trust model | Trustless — build trust from zero | Institutional — extend existing trust |
| Identity | Public NFT registry, anyone can browse | Private credentials, selective disclosure |
| Reputation | Public feedback signals, on-chain scoring | Private bilateral attestations, unforgeable |
| Validation | Post-hoc — did the agent do the job? | Pre-transaction — can the agent do the job? |
| Discovery | Public browse (8004scan.io) | Permissioned directory by counterparty |
| Access | Permissionless — any wallet can register | Verified institutions only |
| Privacy | Transparent by default | Private by default |
| Sybil defense | Reputation scoring, staking | KYC'd institutions, delegation chains |
ERC-8004 answers "should I trust this unknown agent?" with public reputation. KYA answers "is this known institution's agent authorized for this action?" with private credentials. Both are necessary. Neither replaces the other.
Agent profiles with service endpoints. Structured performance data. Pluggable validation hooks. Each adapted for Canton's privacy-first architecture where nothing is public by default.
09 — Why now
600+
Financial institutions
$6T
In tokenized assets
30+
Governance validators
Participants include Goldman Sachs, Deutsche Börse, BNP Paribas, Broadridge, Cboe, Paxos, and Moody's. DTCC is partnering to tokenize US Treasury securities.
Mastercard launched Agent Pay in October 2025, requiring AI agents to carry verified credentials before making purchases.
Visa launched its Trusted Agent Protocol the same day, with Microsoft, Shopify, and Stripe as partners. ERC-8004 went live on Ethereum mainnet in January 2026 with 10,000+ agents registered.
The pattern is proven for consumer payments and public blockchains. Nobody has built the equivalent for institutional finance. That's the gap.
10 — No reinventing the wheel
Credentials
Credential Utility
Canton's existing credential issuance and verification. KYA badges are a new type of credential in this system.
Enforcement
Registry Utility
Lets asset issuers require credentials before transfers. KYA badges plug into these existing rules.
Sharing
Explicit Disclosure
Canton's built-in secure data sharing. How badges and performance attestations travel between parties — cryptographically verified.
Identity
Identity Issuers
Issuer-agnostic. Any trusted identity provider can anchor a delegation chain. The verifier decides who to trust.
Rewards
Featured App API
Canton's application reward system. The KYA service layer uses this to share rewards with integrating apps.
11 — When KYA goes live
KYA is a stakeholder on every verification proof, attestation, and profile contract. That means it sees all network activity — without seeing who's behind it. An automated pulse feed publishes anonymized stats in real time.
A service reads from the Canton Ledger API where KYA is an observer or signatory. It counts contracts by type, aggregates outcomes, and posts anonymized summaries. No institution names. No agent names. No transaction values. Just proof the network is alive and growing.
This is how public chains show ecosystem health. Canton can't do it the same way because everything is private. KYA is uniquely positioned to bridge that gap — it's the one party that sees verification activity across all participants.
KYA Network
@kya_canton
12 agent verifications completed today on Canton. 100% success rate. 0 expired proofs.
Source: KyaVerificationProof contracts
KYA Network
@kya_canton
New agent profiled: autonomous-class, settlement + collateral capabilities. That’s 23 total agents on the network.
Source: KyaAgentProfile contracts
KYA Network
@kya_canton
Weekly compliance: 41 validation hooks executed. 39 passed, 2 blocked. Most common hook: sanctions screening.
Source: KyaValidationHookResult contracts
KYA Network
@kya_canton
Milestone: 500th performance attestation recorded. 6 institutions contributing bilateral attestations across 23 agents.
Source: KyaPerformanceAttestation contracts
12 — Get involved
Ethereum's biggest names validated the thesis with ERC-8004. Canton needs the institutional equivalent. All the building blocks exist. KYA is the missing piece. We're building it in the open.